'SUMMARY OF THE PRINCIPAL EVENTS AND MEASURES OF THE VICEROYALTY OF HIS EXCELLENCY LORD CURZON OF KEDLESTON, VICEROY AND GOVERNOR-GENERAL OF INDIA IN THE FOREIGN DEPARTMENT. I. JANUARY 1899-APRIL 1904. II. DECEMBER 1904-NOVEMBER 1905. VOLUME IV. PERSIA AND THE PERSIAN GULF.' [‎13v] (31/384)

The relief was only temporary. In the following year the Shah was again
in need of funds, and the British Government were again approached. His
[Majesty’s Government were anxious to avert a further Russian loan.
„ ^ . The money could not, however, be raised
ropose n is oan. London market, nor could the Home
Treasury provide the amount. Enquiry was therefore made whether
Indian revenues could find a sum of £500,000. Lord Curzon at once replied
that the Government of India not only could advance the capital, but con
sidered the opportunity one of the greatest political importance. An adequate
return must be obtained, however, and the terms suggested were as follows:—
(1) the loan to be secured upon the Customs of the Gulf Ports and
upon the revenues or Customs, preferably the former, of Seistan ;
(2) the contemplated changes in the Persian tariff then under discus
sion with Russia to be submitted to, and receive the assent of
the Government of India;
(3) the loan to be accompanied by a plain statement to the Persian
Government that, in view of the British interests thus created,
in addition to those already existing in Southern Persia and
Seistan, His Majesty’s Government could not admit the creation
of anv rival interest in those regions.
To avoid infringement of the recent Russian contract which forbade the
raising of a foreign loan, it was proposed that the transaction should be
concluded through the intermediary of the Imperial Bank. Eurther
discussions followed. Einally, on the 6th November, His Majesty’s Minister
was authorised to offer a loan of the amount named, subject to conditions
based upon His Excellency’s recommendations. But modifications were
introduced which diminished the direct political advantage; and Sir Arthur
Hardinge was informed that the advance could not be made through the
Iniperial Bank. The Atabeg at once replied that some assurance would be
required that his acceptance of the loan would not violate the contract
with Russia, which forbade the raising of any external loan. The restriction
as to payment through the Bank was subsequently withdrawn : but the negotia
tions fell through. °
A further Russian loan was already being discussed. In September 1901
and in January and March 1902 sums aggregating 3,000,000 roubles were
advanced by the Banque d’Escompte: and
Second Russian loan, 1902 . i n April 1902, the announcement appeared
,. m x . of a furfclier Russian loan of 10,000,000
roubles. The terms were similar to those of the transaction of 1900, save
that the period of financial tutelage was extended from 1910 to 1912, and that
* he r f ° r t*; 6 loa " included, uot only the existing Customs revenues of
theWW Ut tII 0 , H se whlc . h . m] S ht be (lem ' ed from Customs posts established
here, Iter. 1 lie latter provision was clearly intended to include new posts
on the land frontier between British and Persian Baluchistan. But substantial
pohtical advantages had also been gained. The Russian Government had
thiTpower 11 ^rn £ neS0,la , tln S f new tariff without the intervention of any
thud Poviei A concession had been obtained for the construction of a road
way treemtnt'^ /sootT, ^i^ ° f the Fenian RaU-
way Agreement of 1890 bad been extended for a further period of ten Tears
The original document had provided that for a term of ten years the PeS
S beTonstTumi' nof UCt ’ “ E ° r P ermit n0r ^ta concern
i S n e «n f S,Sned *r ‘i 116 14th Decembei ' 1*99 included the significant provi-
Government Will he r exce P tin S »»«ian Government, no other
i „ &lven a concession to build railways in Persia” Other
concessions, however for which Mens. Witte had made strenuous efforts had
Government'Tn li.chm !o' ° f ^ '“I* had a * Ieast assisted tbe ^s'an
ent in placing some check upon the rapacity of Russian demands.
loan was “needed* ,V? “v,"’ ahr ° nic: witbin a fcw a further
was again invited to wZ\,? ImiSter . WaS a " ai “ aPPMached; and India
the diffipultino to!,* ii 1 i'c experience of the previous year had shown
the difbculties which beset a simple loan. His Majesty’s' Government suggested!